State finance ministers will deliberate on the model GST law at a two-day meeting in Kolkata beginning Tuesday. Finance Minister Arun Jaitley will participate in this meeting of Empowered Committee of State Finance Ministers and try to iron out differences over the new regime that will subsume all indirect taxes and create one national market under the Goods and Services Tax (GST). The Empowered Committee of State Finance Ministers is headed by West Bengal Finance Minister Amit Mitra, who took over the chairmanship in February.
"The meeting on June 14 and 15 will discuss the model GST law, which will be adopted by the Centre and all states. Union Finance Minister will attend the meeting on June 14," an official said.
The Centre is planning to roll out the indirect tax from the next financial year beginning April 1, 2017, but the GST Bill has been pending in Rajya Sabha because of stiff opposition from the Congress party.
Once the Constitution Amendment Bill to roll out GST is passed by Parliament, the Centre and states will have to adopt their own laws to give effect to the new indirect tax regime.
The Central GST (CGST) will be framed based on the model GST law. The states will draft their own State GST (SGST) based on the draft model law with minor variations incorporating state-based exemptions.
Besides these two laws, the Centre and states will have to approve the integrated-GST law or iGST, which will deal with the inter-state movement of goods.
The government has proposed to take up the GST Constitution Amendment Bill in the Rajya Sabha in the forthcoming monsoon session of Parliament.